The S&P 500 futures trade 45 points, or 1.0%, above fair value as investors stick to the buy-the-dip script. The tech-heavy Nasdaq 100 futures have the performance edge and trade 1.2% above fair value amid a downtick in interest rates.
A positive showing in Asian and European equity markets might be supporting risk sentiment, as well as an observation from Dr. Fauci that the U.S. is heading out of the "full blown" pandemic phase. More U.S. states are removing or planning to remove mask mandates.
The earnings story, meanwhile, has been mixed. Chipotle Mexican Grill (CMG 1545.00, +84.65, +5.8%) and Enphase (ENPH 173.75, +29.25, +20.2%) are two earnings standouts, while CVS Health (CVS 109.01, -1.82, -1.6%) and Lyft (LYFT 39.70, -1.50, -3.6%) are trading lower after providing underwhelming guidance.
In the Treasury market, the 2-yr yield is down one basis point to 1.33%, and the 10-yr yield is down two basis points to 1.93% in front of a $37 billion 10-yr note auction (results out at 1:00 p.m. ET). The U.S. Dollar Index is down 0.2% to 95.47. WTI crude futures are down 0.3% to $89.13/bbl.
Today will be another light day in terms of data. Investors will receive Wholesale Inventories for December (Briefing.comconsensus 2.0%) at 10:00 a.m. ET, followed by the weekly EIA crude inventories report at 10:30 a.m. ET. Earlier, the weekly MBA Mortgage Applications Index fell 8.1% following a 12.0% increase in the prior week.
In U.S. Corporate news:
CVS Health (CVS 109.01, -1.82): -1.6% despite beating top and bottom-line estimates. CVS reduced the low-end of its cash flow from operations guidance.
Chipotle Mexican Grill (CMG 1545.00, +84.65): +5.8% after beating EPS estimates, increasing its long-term location goal to 7,000+ restaurants in North America, and accelerating its unit growth forecast to 8-10%,
Lyft (LYFT 39.70, -1.50): -3.6% after issuing downside Q1 revenue guidance due to the Omicron variant slowing ride-share activity in January. The downbeat guidance has overshadowed its better-than-expected earnings report.
Enphase (ENPH 173.75, +29.25): +20.2% after beating top and bottom-line estimates and guiding Q1 revenue above consensus.
II-VI (IIVI 62.20, -2.71): -4.2% after missing revenue estimates and guiding Q3 revenue below consensus.
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended the midweek session on a higher note. Japan's Nikkei: +1.1% Hong Kong's Hang Seng: +2.1% China's Shanghai Composite: +0.8% India's Sensex: +1.1% South Korea's Kospi: +0.8% Australia's ASX All Ordinaries: +1.1%.
In economic data:
Japan's January Machine Tool Orders 61.4% yr/yr (last 40.5%)
Australia's February Westpac Consumer Sentiment -1.3% (last -2.0%)
In news:
Bank of Japan policymaker Nakamura said that CPI is expected to continue accelerating and that an improvement in the domestic economy is now evident.
Japan's government is expected to increase a gasoline subsidy. Honda's profit decreased 17% yr/yr in Q3 but the company raised its outlook for the year.
Major European indices trade on a firmly higher note. STOXX Europe 600: +1.6% Germany's DAX: +1.7% U.K.'s FTSE 100: +0.9% France's CAC 40: +1.6% Italy's FTSE MIB: +2.2% Spain's IBEX 35: +1.6%.
In economic data:
Germany's December trade surplus EUR6.80 bln (expected surplus of EUR10.40 bln; last surplus of EUR10.80 bln). December Imports 4.7% m/m (expected -1.5%; last 3.4%) and Exports 0.9% m/m (expected -0.2%; last 1.8%). December Current Account surplus EUR23.90 bln (last EUR18.90 bln)
Italy's December Industrial Production -1.0% m/m (expected -0.7%; last 2.1%); 4.4% yr/yr (expected 5.0%; last 6.6%)
In news:
Bank of France Governor Villeroy de Galhau said that the market's recent reaction to speculation about an ECB rate hike may have been "too strong."
France's stats agency expects the country's inflation to accelerate to 3.4% by the middle of the year.
Bundesbank President Nagel said that domestic inflation is expected to be significantly above 4.0% in 2022 and that he will advocate for policy normalization if the situation doesn't improve by March.
The Central Bank of Iceland raised its key rate by 75 bps to 2.75% in response to hot inflation.
U.S. equity futures:
S&P 500 Futures: +37 @ 4,559
DJIA Futures: 213 @ 35,675
Nasdaq 100 Futures: +184 @ 14,931
Overseas:
Europe: DAX +1.7%, FTSE +0.9%, CAC +1.6%
Asia: Nikkei +1.1%, Hang Seng +2.1%, Shanghai Composite +0.8%
Commodities:
Crude Oil -0.22 @ 89.19
Nat Gas -0.153 @ 4.095
Gold -0.40 @ 1827.50
Silver +0.038 @ 23.238
Copper +0.0188 @ 4.4798
U.S. Summary:
Earnings/Guidance (Full Earnings Calendar):
Adtalem Global Education (ATGE) misses by $0.21, misses on revs; guides FY22 EPS below consensus, revs below consensus
Ares Capital (ARCC) beats by $0.02
Argo Group (ARGO) expects net adverse prior year reserve development to be $130-140 mln for Q4
Assurant (AIZ) beats by $0.18, reports revs in-line
Atmos Energy (ATO) beats by $0.01, reports revs in-line; guides FY22 EPS in-line; increases annual dividend 8.8% to $2.72/share
Avaya Holdings (AVYA) misses by $0.27, misses on revs; guides MarQ EPS below consensus, revs in-line; guides FY22 EPS below consensus, revs in-line
Azenta (AZTA) beats by $0.08, beats on revs; guides MarQ EPS in-line, revs in-line
Belden (BDC) beats by $0.06, beats on revs; guides Q1 EPS below consensus, revs below consensus; guides FY22 EPS in-line, revs below consensus
Blackstone Mortgage Trust (BXMT) beats by $0.14
Bunge (BG) beats by $0.62, beats on revs; guides FY22 EPS below consensus
Cameco (CCJ) beats by $0.05, beats on revs
Canopy Growth (CGC) beats by $0.04, beats on revs
CDW (CDW) beats by $0.15, beats on revs
Chefs' Warehouse (CHEF) beats by $0.07, beats on revs; guides FY22 revs in-line
Chipotle Mexican Grill (CMG) beats by $0.29, reports revs in-line, comps +15.2%; increase long term location goal to 7,000+ restaurants in North America; accelerates unit growth forecast to +8-10%
CME Group (CME) beats by $0.02, misses on revs
CNO Financial (CNO) beats by $0.27, beats on revs
Compass Minerals (CMP) misses by $0.09, misses on revs, lowers FY22 adjusted EBITDA guidance
Container Store (TCS) beats by $0.07, beats on revs; guides MarQ EPS below consensus but revs above consensus
Corsair Gaming (CRSR) beats by $0.10, beats on revs; guides FY22 revs in-line
Criteo (CRTO) beats by $0.35, reports revs in-line; guides Q1 revs below consensus
Crown (CCK) beats by $0.12, beats on revs; guides Q1 EPS above consensus; guides FY22EPS above consensus
CVS Health (CVS) beats by $0.10, beats on revs; guides FY22EPS in-line, reduces low end of cash flow from operations guidance
Deciphera Pharmaceuticals (DCPH) misses by $0.11, beats on revs
Digital Turbine (APPS) beats by $0.06, beats on revs; guides Q4 EPS above consensus, revs in-line
Douglas Emmett (DEI) misses by $0.01, reports revs in-line; guides FY22FFO in-line
Doximity (DOCS) beats by $0.17, beats on revs; guides MarQ revs in-line; guides FY23revs above consensus
EastGroup (EGP) beats by $0.04, reports revs in-line; guides FY22FFO in-line
Enphase Energy (ENPH) beats by $0.14, beats on revs; guides Q1 revs above consensus
Equinor (EQNR) reports Q4 results; updates outlook
Esco Tech (ESE) reports EPS in-line, misses on revs; reaffirms FY22EPS guidance, revs guidance
FleetCor (FLT) beats by $0.13, beats on revs; guides Q1 EPS in-line, revs in-line; guides FY22EPS in-line, revs above consensus
FMC Corp (FMC) beats by $0.15, beats on revs; guides Q1 EPS in-line, revs in-line; guides FY22EPS in-line, revs in-line, authorizes new $1.0 bln share repurchase program
GlaxoSmithKline (GSK) beats by GBP0.03, reports revs in-line
GlobalFoundries (GFS) beats by $0.07, beats on revs; guides Q1 EPS above consensus, revs above consensus
Healthcare Services Group (HCSG) misses by $0.11, reports revs in-line
Healthpeak (PEAK) reports FFO in-line, beats on revs; guides FY22FFO in-line
Highwoods Prop (HIW) beats by $0.08, beats on revs; guides FY22FFO in-line
Honda Motor (HMC) reports nine-month results; raises outlook
Hub Group (HUBG) beats by $1.05, beats on revs; guides FY22EPS above consensus, revs above consensus
i3 Verticals (IIIV) beats by $0.03, beats on revs; guides FY21EPS in-line, revs in-line
ICHOR Corporation (ICHR) misses by $0.01, misses on revs; guides Q1 EPS in-line, revs in-line
II-VI (IIVI) beats by $0.06, misses on revs; guides Q3 EPS in-line, revs below consensus
Inspire Medical Systems (INSP) beats by $0.37, beats on revs; guides FY22revs above consensus
Jack Henry (JKHY) beats by $0.18, beats on revs; guides FY22EPS above consensus, revs above consensus
Laureate Education (LAUR) sees Q4 and FY22revs above consensus
Liberty Oilfield Services (LBRT) misses by $0.14, reports revs in-line
Lithia Motors (LAD) beats by $1.33, beats on revs
Lyft (LYFT) beats by $0.01, beats on revs, achieves new quarterly record for contribution margin, adjusted EBITDA comes in at high end of guidance range
Mandiant (MNDT) beats by $0.03, beats on revs; guides Q1 EPS below consensus, revs below consensus; guides FY22EPS below consensus, revs below consensus
Model N (MODN) beats by $0.07, beats on revs; guides Q2 EPS in-line, revs in-line; guides FY22EPS in-line, revs in-line
MSG Entertainment (MSGE) reports Q2 (Dec) results, misses on revs
Nabors Industries (NBR) misses by $2.25, misses on revs
NCR Corp (NCR) beats by $0.06, reports revs in-line; guides Q1 EPS below consensus, revs in-line; guides FY22EPS in-line, revs in-line; exploring strategic alternatives
New Relic (NEWR) misses by $0.01, beats on revs; guides MarQ EPS below consensus, revs in-line
Omnicom (OMC) beats by $0.24, beats on revs
Onto Innovation (ONTO) beats by $0.12, beats on revs; guides Q1 EPS above consensus, revs above consensus
Paycom Software (PAYC) beats by $0.03, beats on revs; guides Q1 revs above consensus; guides FY22revs above consensus
Penske Auto (PAG) beats by $0.26, beats on revs
Performance Food Group (PFGC) beats by $0.09, reports revs in-line; guides Q3 revs above consensus; guides FY22revs in-line
Perion Network (PERI) beats by $0.12, beats on revs; raises FY22guidance
Qiagen (QGEN) beats by $0.14; guides FY22EPS above consensus, revs in-line
QuinStreet (QNST) misses by $0.02, misses on revs; guides Q3 revs below consensus; guides FY23revs below consensus
Radware (RDWR) reports EPS in-line, beats on revs
Reynolds Consumer Products (REYN) beats by $0.02, reports revs in-line; guides Q1 EPS below consensus, revs in-line; guides FY21EPS in-line, revs above consensus
ScanSource (SCSC) beats by $0.18, beats on revs; guides FY22revs above two analyst estimate
SITE Centers (SITC) beats by $0.03, beats on revs; guides FY22FFO in-line
StepStone Group (STEP) beats by $0.07, beats on revs
Steris (STE) beats by $0.16, reports revs in-line; guides FY22EPS above consensus, raises constant currency organic revenue growth to +11%
Teva Pharma (TEVA) beats by $0.04, misses on revs; guides FY22EPS below consensus, revs below consensus
Toyota Motor (TM) reports nine-month results; sees FY revs below consensus
Trimble (TRMB) misses by $0.01, beats on revs; guides FY22EPS below consensus, revs in-line
Trinseo (TSE) beats by $0.04, beats on revs
Triumph Group (TGI) beats by $0.01, misses on revs; raises FY22EPS guidance; lowers FY22rev guidance
Valvoline (VVV) beats by $0.03, beats on revs; guides FY22EPS in-line, reaffirms FY22revs guidance
Varex Imaging (VREX) misses by $0.03, misses on revs; guides Q2 EPS in-line, revs in-line
Voya Financial (VOYA) beats by $0.40
XPO Logistics (XPO) beats by $0.36, beats on revs; guides FY22EPS above consensus
Yum! Brands (YUM) misses by $0.07, reports revs in-line
Yum China (YUMC) misses by $0.20, misses on revs
General News:
Dr. Anthony Fauci says US is heading out of the "full blown" pandemic phase. He is hopeful all pandemic restrictions will end over the coming months, but those decisions will be made at a local or state level, according to Financial Times
Illinois plans to remove mask mandate on March 1for public places with the exception of schools as the state plans to appeal judge's ruling against school mask mandate. Chicago will announce a decision for its mask mandates later, according to ABC News
New York and Oregon will end mask mandates, but it's unclear if schools will have their separate mandates dropped, according to the New York Times
Protesters against vaccination mandates are blocking key bridge in Canada used for the auto supply chain, according to Bloomberg
House passes bill to fund government through March 11, sending it to the Senate where it is expected to pass
100 million Americans can now legally bet on Super Bowl, according to Bloomberg
3M (MMM) increases quarterly dividend 0.7% to $1.49/share
Aerojet Rocketdyne (AJRD) announces successful building and testing of Stored Chemical Energy Propulsion
Albemarle (ALB) in discussions to expand lithium JV with Mineral Resources
Azul S.A. (AZUL) reports January 2022 traffic
BlackBerry (BB) Chairman/CEO adopted a written stock trading plan
Bristol-Myers (BMY) has entered into accelerated share repurchase transactions under agreements to repurchase, in aggregate, $5 bln of Bristol Myers Squibb common stock
ChromaDex (CDXC) announces issuance of new U.S. continuation patent, expanding intellectual property portfolio for nicotinamide riboside
CI Financial Corp (CIXX) makes strategic investment in Newton Crypto
CNB Financial (CCNE) announces upcoming retirement of CEO Joseph B. Bower, Jr.
Cohen & Steers (CNS) reports preliminary assets under management as of January 31 of $102.1 bln
Ecopetrol (EC) announces the launch of its 2040 strategy and its operational and financial targets for the 2022 - 2024 term
Fidelity Nat'l Info (FIS) announces the promotion of Stephanie Ferris to company President effective Feb. 8
Fluence (FLNC) announces an agreement with The AES Corporation (AES) to employ the AI-powered Fluence IQ Bidding Application to maximize the value of a 1.1 GW portfolio of solar and energy storage projects in the Western United States
Fluor (FLR) announces upcoming retirement of Alan Boeckmann as executive chairman
fuboTV's (FUBO) Fubo Gaming announces market access agreement with Cleveland Cavaliers
Guess? (GES) issues statement in response to letter from Legion Partners
IGM Biosciences (IGMS) announces its progress in two Phase 1 clinical trials evaluating IGM-6268
II-VI (IIVI) announces that it shipped its 400G ZR+ QSFP-DD-DCO transceivers, the world's first with 0 dBm output power, to Windstream Wholesale for field qualification
Mandiant (MNDT) announces new strategic alliance with SentinelOne (S)
Missfresh Ltd.: (MF) compared with pre-holiday sales levels, the gross merchandise value generated on its platform doubled during the Chinese New Year holiday
Primerica (PRI) increases quarterly dividend to $0.55/share from $0.47/share
Rivian (RIVN) and Samsung (SSNLF) partnership has ended, according to Digitimes
Silence Therapeutics (SLN) announced positive topline results in its phase 1 single-ascending dose study of SLN360
Southwest Air (LUV) and the Transport Workers Union reach a tentative agreement for the over 400 dispatch employees
Teradata (TDC) announces a $250 mln accelerated repurchase program with JPMorgan Chase (JPM)
Tesla (TSLA): California aiming to file lawsuit against Tesla over alleged discrimination, according to Reuters
Velodyne Lidar (VLDR) won a patent challenge brought by competitor Quanergy (QNGY)
XPeng (XPEV) announces inclusion of its shares in the Shenzhen-Hong Kong Stock Connect Program
Yamana Gold (AUY) Reports Updated Mineral Reserves and Mineral Resources Underpinning Increasing Mine Lives Across Its Portfolio
M&A:
Doximity (DOCS) has acquired Amion; financial terms were not disclosed
Syndicate:
Bowman Consulting Group (BWMN) prices offering 1.05 mln shares of common stock at $16.00 per share
Cummins (CMI) files mixed securities shelf offering
Incyte (INCY) files for 33,433,028 share common stock offering by selling shareholders
M3-Brigade Acquisition II Corp. (MBAC) terminates merger agreement with Syniverse by mutual agreement
Masco (MAS) files mixed securities shelf offering
IPOs:
Expected to Price:
No IPOs expected to price.
Gapping Up/Down
Gapping up:
ENPH +19%, NCR +11.3%, DOCS +10.4%, SCSC+9.7%, SEDG +9.4%, PAYC +7.8%, PERI +7.2%, HUBG+7%, RUN +6.9%, CMG +5.8%, XPEV +5.7%, CNO+5.4%, FSLR +5.2%, GFS +5.2%, OMC +5.2%, QGEN+3.8%, FLT +3.7%, XPO +3.7%, XPO +3.7%, TWI+3.3%, KPTI +3.1%, EQNR +3.1%, IIIV +2.8%, RDWR+2.8%, PEAK +2.7%, AJRD +2.4%, JKHY +2.2%, TGI+2%, MODN +1.8%, LAD +1.8%, BHC +1.7%, UMH+1.7%, S +1.6%, NFLX +1.4%, FUBO +1.3%, ONTO+1.1%, APPS +1%, BG +1%, ARCC +1%, MMM +0.9%, SPLK +0.8%, LUV +0.8%, AAPL +0.7%
Gapping down:
TCS -25.9%, NEWR -24%, ATGE -18.3%, QNST-17.5%, ARGO -15.2%, VREX -10.3%, CMP -8.1%, LBRT -7.4%, USNA -7.2%, ICHR -6.3%, BIG -4.8%, LYFT -4.6%, YUMC -4%, VVV -3.7%, MAS -3.6%, CVS-3.4%, NBR -2.5%, ATO -2.4%, INCY -2.2%, CRSR-2.1%, DCPH -2%, GSK -1.3%, FMC -1.1%, UBER-0.6%, MNDT -0.6%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Admiral Group (AMIGY) upgraded to Buy from Hold at HSBC Securities
Advanced Micro (AMD) upgraded to Buy from Outperform at Daiwa Securities; tgt raised to $150
Dassault Systemes (DASTY) upgraded to Neutral from Sell at UBS
Enphase Energy (ENPH) upgraded to Buy from Hold at Craig Hallum
GDS Holdings (GDS) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $60
Karyopharm Therapeutics (KPTI) upgraded to Neutral from Underweight at JP Morgan; tgt $8
MP Materials (MP) upgraded to Buy from Hold at The Benchmark Company; tgt $47
Penn Natl Gaming (PENN) upgraded to Positive from Neutral at Susquehanna; tgt raised to $65
Tenet Healthcare (THC) upgraded to Buy from Hold at Truist; tgt $90
Thomson Reuters (TRI) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt lowered to $120
Vale S.A. (VALE) upgraded to Outperform from Neutral at Exane BNP Paribas; tgt $20.50
Downgrades:
Argo Group (ARGO) downgraded to Neutral from Buy at Compass Point; tgt $47.50
Argo Group (ARGO) downgraded to Outperform from Strong Buy at Raymond James; tgt lowered to $60
Big Lots (BIG) downgraded to Underweight from Neutral at JP Morgan; tgt lowered to $31
Incyte (INCY) downgraded to Underperform from Mkt Perform at SVB Leerink; tgt lowered to $56
Willis Towers Watson (WTW) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $240
Others:
BigBear.ai (BBAI) initiated with a Mkt Perform at William Blair
Cvent (CVT) initiated with a Neutral at JP Morgan; tgt $8
Constellation Energy (CEG) initiated with an Overweight at KeyBanc Capital Markets; tgt $51
Core & Main (CNM) resumed with a Neutral at Citigroup; tgt $25
Gevo (GEVO) initiated with a Buy at Citigroup; tgt $5
Hippo (HIPO) initiated with a Mkt Outperform at JMP Securities; tgt $4
ICHOR Corporation (ICHR) resumed with an Outperform at Cowen; tgt lowered to $50
R1 RCM (RCM) initiated with a Buy at Deutsche Bank; tgt $30
Safehold (SAFE) initiated with an Overweight at Morgan Stanley; tgt $150
TPG Inc. (TPG) initiated with a Market Perform at BMO Capital Markets; tgt $34
Tyler Tech (TYL) initiated with a Buy at Truist; tgt $550
Veritone (VERI) initiated with a Buy at BofA Securities; tgt $22
Upcoming Events:
Econ Data:
07:00 ET: MBA Mortgage Applications Index for Feb. 5 (Briefing.comConsensus NA; Prior 12.0%)
10:00 ET: Wholesale Inventories for Dec. (Briefing.comConsensus 2.0%; Prior 1.4%)
10:30 ET: EIA Crude Oil Inventories for Feb. 5 (Briefing.comConsensus NA; Prior -1.05M)
Earnings:
Monday (Feb 7)
Morning: AMG CRNC CNA ENR GTES HAS ON TSN ZBH
Afternoon: ACM AOSL AMGN ACLS BRX CHGG DHT KMT KFRC LEG NUAN PDM PFG RMBS SLQT SPG SSD SNCY TTWO THC TDC VRNS
Tuesday (Feb 8)
Morning: AGCO ARMK AVNT BP CARR CVE CNC CNHI COTY CTS DD EPC FISV IT HAE HOG INCY KKR LEA MBUU MAS NRZ NVT PFE POLY SPGI SYY TMHC TRI TDG VIRT VSH WMG
Afternoon: ATGE AIZ ATO AZTA CMG CNO CMP CRSR CCK DCPH APPS DEI DOCS EGP ENPH ESE FLT FMC GFS PEAK HIW HUBG ICHR INSP JKHY LBRT LYFT MNDT MODN NCR NEWR OMC ONTO PAYC PTON QGEN QNST SCSC SAVE STEP STE TRMB TSE UDR VVV VREX VOYA XPO YUMC
Wednesday (Feb 9)
Morning: ARCC AVYA BDC BXMT BG CCJ CGC CDW CHEF CME CRTO CVS FOXA HMC IIVI LAD MSGE NNN PAG PFGC RDWR REYN SITC TEVA TGI YUM
Afternoon: TWOU AEIS AFG NLY ACGL ASGN BKH CDAY CHX CPA CXW DCP DIOD ENS NVST EQT EFX EQC EEFT RE FR FLNC FWRD ULCC GFL PI IFF IRBT ITT KN RAMP LUMN MFC MAT MDU MESA MGM MC MOH MSI ORLY PEP PPC PAA RPD REXR SGEN SONO SPSC SLF TTMI TWLO TWO UBER UDMY VMEO DIS WTS ZNGA
Thursday (Feb 10)
Morning: ALNY MT AZN CAMT GOOS ECOM KO CIGI CYBR DDOG DBD DTE DUK FAF GPN GPI HRI HII INMD NSIT IPG K KIM LH LCII LECO LIN MAC MLM MCO PATK PTEN PBF BTU PCG PM PIPR PDS ROLL SSTK SON TPR TTGT TU TUFN TWTR WSO WEX ZBRA
Afternoon: ME AFRM AVLR BIO BL BE BHF ELY CSL CC NET COHU CFLT OFC COUR DVA DXCM EQH EXPE FRT FE FLO FRSH GDDY HUBS ILMN NSP FROG MTD MHK MNTV MPWR NWE PRO QLYS REG RSG SSNC TEX RARE UPWK VRSN VCRA WU YELP ZEN ZG
Friday (Feb 11)
Morning: AB AXL APO ARES BRKR CAE CLF D ENB ESNT FTS G GT GPRE IAA MGA COOP NBIX NWL NMRK PRLB SXT UAA WPC
Asia & Europe detail:
Asia: Nikkei +1.1%, Hang Seng +2.1%, Shanghai Composite +0.8%
Equity indices in the Asia-Pacific region ended the midweek session on a higher note. Bank of Japan policymaker Nakamura said that CPI is expected to continue accelerating and that an improvement in the domestic economy is now evident. Japan's government is expected to increase a gasoline subsidy. Honda's profit decreased 17% yr/yr in Q3 but the company raised its outlook for the year.
In economic data:
Japan's January Machine Tool Orders 61.4% yr/yr (last 40.5%)
Australia's February Westpac Consumer Sentiment -1.3% (last -2.0%)
---Equity Markets---
Japan's Nikkei: +1.1%
Hong Kong's Hang Seng: +2.1%
China's Shanghai Composite: +0.8%
India's Sensex: +1.1%
South Korea's Kospi: +0.8%
Australia's ASX All Ordinaries: +1.1%
---FX---
USD/JPY: -0.1% to 115.46
USD/CNH: +0.1% to 6.3684
USD/INR: +0.1% to 74.78
Europe: DAX +1.7%, FTSE +0.9%, CAC +1.6%
Major European indices trade on a firmly higher note. Bank of France Governor Villeroy de Galhau said that the market's recent reaction to speculation about an ECB rate hike may have been "too strong." France's stats agency expects the country's inflation to accelerate to 3.4% by the middle of the year. Bundesbank President Nagel said that domestic inflation is expected to be significantly above 4.0% in 2022 and that he will advocate for policy normalization if the situation doesn't improve by March. The Central Bank of Iceland raised its key rate by 75 bps to 2.75% in response to hot inflation.
In economic data:
Germany's December trade surplus EUR6.80 bln (expected surplus of EUR10.40 bln; last surplus of EUR10.80 bln). December Imports 4.7% m/m (expected -1.5%; last 3.4%) and Exports 0.9% m/m (expected -0.2%; last 1.8%). December Current Account surplus EUR23.90 bln (last EUR18.90 bln)
Italy's December Industrial Production -1.0% m/m (expected -0.7%; last 2.1%); 4.4% yr/yr (expected 5.0%; last 6.6%)
---Equity Markets---
STOXX Europe 600: +1.6%
Germany's DAX: +1.7%
U.K.'s FTSE 100: +0.9%
France's CAC 40: +1.6%
Italy's FTSE MIB: +2.2%
Spain's IBEX 35: +1.6%
---FX---
EUR/USD: +0.2% to 1.1440
GBP/USD: +0.3% to 1.3583
USD/CHF: -0.2% to 0.9229